Coinbase Preparing For Another Layoff Amid Market Turmoil?
Key Points:
- Coinbase’s CFO does not rule out layoffs to secure the company’s finances.
- The action comes after the company released its data report for the fourth quarter of 2022.
- The crypto company said it would try to break even but reversed course in its latest earnings report and will now try to maintain EBIDTAT earnings (earnings before interest, taxes, and fees); depreciation and amortization are favorable.
Coinbase Global Inc., which has laid off employees twice in the last year, is ready to make more cuts if necessary to improve the company’s financial performance, Chief Financial Officer Alesia Haas said.
With the harshness of the market, many crypto companies have had to choose a solution to reduce human resources to optimize costs. In 2022, Coinbase, one of the largest cryptocurrency companies in the United States, had to lay off more than 2000 employees in 2 rounds of layoffs.
However, this could continue after the company releases data for the fourth quarter. The data showed net sales of $605 million, beating analyst expectations of $588 million compared to $590 million in Q3.
The dollar rose 5%. The adjusted $2.46 per share was better than the $2.52 loss that FactSet had expected. But trading volume fell 12% quarter-on-quarter to $322 million.
Subscription and services revenue grew 34% sequentially to $283 million, representing nearly 50% of total revenue, driven primarily by interest income ($162.2 million).
In its letter to shareholders, Coinbase said that the crypto market had improved so far in the first quarter of this year compared to last year, but the market is subject to change in the future.
Coinbase is looking to get there thanks to its subscription and services business, which has now covered most of its costs. According to the company’s shareholder letter, it has cut its costs significantly, with a 30% reduction in technology, sales, and marketing from the first to the fourth quarter.
The company, which previously said it would try to stay close to breaking even, diverged when it reported earnings on Tuesday. It said it would try to maintain positive payments before interest, taxes, deductions, etc., depreciation, and depreciation amortization.
“We are looking to improve EBIDTA year over year,(…). If we find we are not able to do so, we will right-size our expenses. We are nimble. We will take the necessary steps.”
Alesia Haas said in the interview.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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Coinbase Preparing For Another Layoff Amid Market Turmoil?
Key Points:
- Coinbase’s CFO does not rule out layoffs to secure the company’s finances.
- The action comes after the company released its data report for the fourth quarter of 2022.
- The crypto company said it would try to break even but reversed course in its latest earnings report and will now try to maintain EBIDTAT earnings (earnings before interest, taxes, and fees); depreciation and amortization are favorable.
Coinbase Global Inc., which has laid off employees twice in the last year, is ready to make more cuts if necessary to improve the company’s financial performance, Chief Financial Officer Alesia Haas said.
With the harshness of the market, many crypto companies have had to choose a solution to reduce human resources to optimize costs. In 2022, Coinbase, one of the largest cryptocurrency companies in the United States, had to lay off more than 2000 employees in 2 rounds of layoffs.
However, this could continue after the company releases data for the fourth quarter. The data showed net sales of $605 million, beating analyst expectations of $588 million compared to $590 million in Q3.
The dollar rose 5%. The adjusted $2.46 per share was better than the $2.52 loss that FactSet had expected. But trading volume fell 12% quarter-on-quarter to $322 million.
Subscription and services revenue grew 34% sequentially to $283 million, representing nearly 50% of total revenue, driven primarily by interest income ($162.2 million).
In its letter to shareholders, Coinbase said that the crypto market had improved so far in the first quarter of this year compared to last year, but the market is subject to change in the future.
Coinbase is looking to get there thanks to its subscription and services business, which has now covered most of its costs. According to the company’s shareholder letter, it has cut its costs significantly, with a 30% reduction in technology, sales, and marketing from the first to the fourth quarter.
The company, which previously said it would try to stay close to breaking even, diverged when it reported earnings on Tuesday. It said it would try to maintain positive payments before interest, taxes, deductions, etc., depreciation, and depreciation amortization.
“We are looking to improve EBIDTA year over year,(…). If we find we are not able to do so, we will right-size our expenses. We are nimble. We will take the necessary steps.”
Alesia Haas said in the interview.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Foxy
Coincu News
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